Sullivan casino owner reports $37M quarterly loss – Times Herald-Record

Daniel Axelrod Times Herald-Record @dan_axelrod

THOMPSON — Revenue at Resorts World Catskills casino’s parent Empire Resorts is far below the level needed to cover the business’s expenses, according to a new corporate earnings report and state gaming commission figures.

Empire Resorts logged a second-quarter loss of $37.2 million on revenue of $49.1 million and operating expenses of $71.5 million, according to its second-quarter earnings report with the Securities and Exchange Commission, as the company continues the phased opening of a casino-entertainment complex that debuted Feb. 8.

Charlie Degliomini, executive vice president of Empire Resorts, declined to comment Friday on the company’s performance.

“It’s going to take time to penetrate the market, and you need some runway to do that,” Degliomini said in a July interview. The casino is growing stronger “now that more of our amenities are online, and we’ve activated our million-dollar summer marketing campaign, in conjunction with our multimedia marketing campaign, and we have more attractions coming,” he continued.

Most critically for the owner of the $920 million, 1.6-million-square-foot Resorts World Catskills casino, Empire Resorts is generating just $16.6 million per month in revenue, which projects to $196.5 million for the year. Revenue includes cash from gaming, restaurants, hotel rooms and other sources.

During the second quarter of the year, the company reported a $22.4 million operating loss, which doesn’t count its $15 million of interest expense. According to Moody’s, a healthy regional casino produces a 25 percent margin for earnings before interest, taxes, depreciation and amortization.

Even if Empire Resorts improved enough to generate that margin, it would fall about $25 million per year short of covering its $75 million in annual debt- and capital investment-related expenses. Empire Resorts owes more than $500 million in debt and other long-term liabilities.

“Without a rapid and significant increase in revenue, the company won’t be able to meet its

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